The heads of the world’s major central banks have expressed their full support for the US Federal Reserve and its chairman, Jerome Powell, saying it is vital to protect the institution’s independence.
In a joint statement issued on Tuesday, January 13, 2026, the central bank leaders said it was critical to preserve the independence of the Federal Reserve and other monetary authorities in order to ensure financial stability and effective economic management.
“We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell,” the statement read. “The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve.”
The statement comes amid growing political pressure on the Fed following a Department of Justice (DOJ) criminal investigation into Powell. US prosecutors issued grand jury subpoenas against Powell on January 9, 2026, threatening a criminal indictment in what is widely seen as an unprecedented escalation of pressure against the central bank.
The signatories include the chiefs of the European Central Bank (ECB), the Bank of England, and central banks in Canada, Sweden, Denmark, Norway, Switzerland, Australia, South Korea and Brazil. The statement was coordinated under the Bank for International Settlements (BIS) banner.
ECB President Christine Lagarde signed the statement on behalf of the ECB Governing Council, while Bank of England Governor Andrew Bailey also added his signature. François Villeroy de Galhau, Chair of the Board of Directors of the BIS, and Pablo Hernández de Cos, General Manager of the BIS, were among the signatories.
The most notable missing signatory was the Bank of Japan, which said it does not comment on other central banks’ statements.
The central bank chiefs emphasized that independent monetary policy allows central banks to make decisions based on economic conditions rather than political considerations, which helps maintain investor confidence and market stability.
“It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability,” the statement added. “Chair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest. To us, he is a respected colleague who is held in the highest regard by all who have worked with him.”
The DOJ investigation officially focuses on cost overruns with the Fed’s headquarters renovation, specifically whether Powell misled Congress regarding a $2.5 billion renovation project. The DOJ alleges that Powell misrepresented costs in his June 2025 testimony, disputing his claims that the project lacked extravagant features like rooftop gardens and specialized elevators.
However, Powell and his predecessors have characterized the investigation as a pretextual attempt by the Trump administration to intimidate the Fed into making aggressive interest rate cuts.
In an extraordinary video statement released on Sunday, January 11, 2026, Powell broke the Fed’s traditional silence on legal matters and directly linked the criminal probe to political pressure.
“This is not about a building; it is about whether the Fed will be able to continue to set interest rates based on evidence and data, or whether monetary policy will be directed by political pressure or intimidation,” Powell stated. He vowed to continue setting monetary policy without political fear or favor.
The controversy represents the culmination of a yearlong feud between the White House and the Federal Reserve. Throughout 2025, President Trump frequently attacked Powell on social media, labeling him a “numbskull” for refusing to slash rates despite the administration’s economic targets.
In a historic display of institutional solidarity on January 12, 2026, a bipartisan coalition of former Federal Reserve leaders also issued a blistering rebuke against the DOJ’s investigation. The joint statement, signed by former chairs Alan Greenspan, Ben Bernanke, and Janet Yellen, warned that the probe represents a dangerous and unprecedented assault on the independence of the US central bank.
The Federal Reserve plays a central role in shaping global financial conditions, and any threat to its independence could have wide ranging economic consequences, analysts say.
The wider significance of the DOJ’s probe lies in the potential inflation premium now being priced into the bond market. The 10 year Treasury yield has spiked as investors demand higher returns to compensate for the risk that the Fed will no longer act as a bulwark against rising prices.
Senator Thom Tillis, a Republican from North Carolina who sits on the closely divided Senate Banking Committee, vowed to oppose the confirmation of any Trump Fed nominees until the investigation ends. That could freeze Trump’s pick for Powell’s replacement when his term expires in May 2026.
The Supreme Court is scheduled to hear oral arguments on January 21, 2026, on how much power Trump has to remove Fed officials, a case that could also reshape the central bank’s independence.
The show of unity from global central bankers was seen as a clear message in defense of the Fed and Powell’s leadership, underscoring the international concern about threats to central bank independence worldwide.
